Attached files
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8-K - FORM 8-K - SELECTIVE INSURANCE GROUP INC | f8k_102611.htm |
EX-99.1 - EXHIBIT 99.1 - SELECTIVE INSURANCE GROUP INC | exh_991.htm |
EXHIBIT 99.2
Supplemental Investor Package
_______________________________________________
Third Quarter 2011
Investor Contact:
Jennifer DiBerardino
Senior Vice President, Investor Relations and Treasurer
Tel: 973-948-1364
jennifer.diberardino@selective.com
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Selective Insurance Group, Inc.
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Selected Balance Sheet Data (unaudited)
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($ in thousands, except per share amounts)
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September 30,
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September 30,
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December 31,
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||||||||||||||||||||||||||||||||||
2011
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2010
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2010
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Unrecognized/
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Unrecognized/
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Unrecognized/
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Balance
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Market
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Unrealized
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Balance
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Market
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Unrealized
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Balance
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Market
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Unrealized
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||||||||||||||||||||||||||||
Sheet
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Value
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Gain/(Loss)
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Sheet
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Value
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Gain/(Loss)
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Sheet
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Value
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Gain/(Loss)
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Invested Assets:
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||||||||||||||||||||||||||||||||||||
Corporate bonds1
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$ | 1,900,130 | 1,915,953 | 68,871 | $ | 1,548,160 | 1,569,975 | 73,054 | $ | 1,683,336 | 1,704,600 | 35,334 | ||||||||||||||||||||||||
Gov't\ Municipal bonds
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1,725,061 | 1,757,780 | 109,189 | 1,939,587 | 1,985,217 | 121,589 | 1,873,730 | 1,894,436 | 77,913 | |||||||||||||||||||||||||||
Total bonds
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3,625,191 | 3,673,733 | 178,060 | 3,487,747 | 3,555,192 | 194,643 | 3,557,066 | 3,599,036 | 113,247 | |||||||||||||||||||||||||||
Equities
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139,203 | 139,203 | (11,314 | ) | 63,116 | 63,116 | 8,065 | 69,636 | 69,636 | 11,597 | ||||||||||||||||||||||||||
Short-term investments
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162,812 | 162,812 | - | 265,043 | 265,043 | - | 161,155 | 161,155 | - | |||||||||||||||||||||||||||
Other investments
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135,560 | 135,560 | (3,189 | ) | 154,728 | 154,728 | (19,452 | ) | 137,865 | 137,865 | (4,982 | ) | ||||||||||||||||||||||||
Total invested assets
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4,062,766 | 4,111,308 | 163,557 | 3,970,634 | 4,038,079 | 183,256 | 3,925,722 | 3,967,692 | 119,862 | |||||||||||||||||||||||||||
Invested assets per $ of stockholders' equity
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3.74 | 3.64 | 3.67 | |||||||||||||||||||||||||||||||||
Total assets
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5,748,990 | 5,334,521 | 5,231,772 | |||||||||||||||||||||||||||||||||
Liabilities:
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Reserve for losses and loss expenses
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3,243,622 | 2,809,797 | 2,830,058 | |||||||||||||||||||||||||||||||||
Unearned premium reserve
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902,112 | 880,698 | 823,596 | |||||||||||||||||||||||||||||||||
Total liabilities
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4,662,435 | 4,242,205 | 4,160,663 | |||||||||||||||||||||||||||||||||
Stockholders' equity
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1,086,555 | 1,092,316 | 1,071,109 | |||||||||||||||||||||||||||||||||
Total debt to capitalization ratio
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19.4 | % | 19.4 | % | 19.7 | % | ||||||||||||||||||||||||||||||
Adjusted total debt to capitalization ratio 2
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12.8 | % | 12.7 | % | 12.9 | % | ||||||||||||||||||||||||||||||
Book value per share
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20.04 | 20.41 | 19.95 | |||||||||||||||||||||||||||||||||
Book value per share excluding
unrealized gain or loss on bond portfolio
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18.49 | 18.87 | 19.09 | |||||||||||||||||||||||||||||||||
NPW per insurance segment employee
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771 | 760 | 761 | |||||||||||||||||||||||||||||||||
Statutory premiums to surplus ratio
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1.4 | x | 1.4 | x | 1.3 | x | ||||||||||||||||||||||||||||||
Statutory surplus
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1,010,144 | 1,034,321 | 1,073,025 |
1 Includes mortgage-backed and asset-backed securities.
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2 The adjusted debt to capitalization ratio reflects an estimated equity treatment of 90% applied to our $100 million Junior Subordinated Notes issued September 25, 2006 as applied by A.M. Best.
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Selective Insurance Group, Inc.
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Selected Income Statement Data (unaudited)
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September 2011
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THREE MONTHS ENDED September 30,
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NINE MONTHS ENDED September 30,
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($ in thousands, except per share amounts)
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2011
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2010
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2011
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2010
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Per diluted share
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Per diluted share
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Per diluted share
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Per diluted share
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Consolidated
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Revenue
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$ | 394,069 | $ | 389,702 | $ | 1,197,095 | $ | 1,170,532 | |||||||||||||||||||||||||
Operating (loss) income
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(18,163 | ) | (0.34 | ) | 18,794 | 0.35 | 572 | 0.01 | 47,641 | 0.88 | |||||||||||||||||||||||
Net realized (losses) gains, after tax
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(1,329 | ) | (0.02 | ) | 37 | - | 3,810 | 0.07 | (2,126 | ) | (0.04 | ) | |||||||||||||||||||||
(Loss) Income from continuing operations
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(19,492 | ) | (0.36 | ) | 18,831 | 0.35 | 4,382 | 0.08 | 45,515 | 0.84 | |||||||||||||||||||||||
Loss on discontinued operations, after tax
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(650 | ) | (0.01 | ) | (1,634 | ) | (0.03 | ) | (650 | ) | (0.01 | ) | (3,749 | ) | (0.07 | ) | |||||||||||||||||
Net (loss) income
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(20,142 | ) | (0.37 | ) | 17,197 | 0.32 | 3,732 | 0.07 | 41,766 | 0.77 | |||||||||||||||||||||||
Operating return on equity
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-6.6 | % | 7.0 | % | 0.1 | % | 6.1 | % | |||||||||||||||||||||||||
Insurance Operations
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Gross premiums written
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476,343 | 446,684 | 1,354,470 | 1,295,622 | |||||||||||||||||||||||||||||
Net premiums written
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396,832 | 367,114 | 1,133,170 | 1,088,729 | |||||||||||||||||||||||||||||
Net premiums earned
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358,963 | 354,709 | 1,065,886 | 1,063,101 | |||||||||||||||||||||||||||||
Underwriting loss
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- before tax
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(68,124 | ) | (3,933 | ) | (111,890 | ) | (21,699 | ) | ||||||||||||||||||||||||
- after tax
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(44,281 | ) | (0.82 | ) | (2,556 | ) | (0.05 | ) | (72,728 | ) | (1.32 | ) | (14,104 | ) | (0.26 | ) | |||||||||||||||||
GAAP combined ratio
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119.0 | % | 101.1 | % | 110.5 | % | 102.0 | % | |||||||||||||||||||||||||
Commercial lines
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Net premiums earned
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292,363 | 293,225 | 869,421 | 884,134 | |||||||||||||||||||||||||||||
GAAP combined ratio
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113.5 | % | 100.0 | % | 107.6 | % | 100.9 | % | |||||||||||||||||||||||||
Personal lines
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Net premiums earned
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66,600 | 61,484 | 196,465 | 178,967 | |||||||||||||||||||||||||||||
GAAP combined ratio
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143.2 | % | 106.4 | % | 123.1 | % | 107.8 | % | |||||||||||||||||||||||||
Investments
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Net investment income
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- before tax
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35,786 | 32,986 | 118,604 | 104,237 | ||||||||||||||||||||||||||||
- after tax
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26,976 | 0.50 | 25,305 | 0.46 | 88,521 | 1.60 | 80,058 | 1.47 | |||||||||||||||||||||||||
Effective tax rate
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24.6 | % | 23.3 | % | 25.4 | % | 23.2 | % | |||||||||||||||||||||||||
Annual after-tax yield on investment portfolio
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3.0 | % | 2.8 | % | |||||||||||||||||||||||||||||
Annual after-tax, after-interest expense yield
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2.7 | % | 2.4 | % | |||||||||||||||||||||||||||||
Invested assets per $ of stockholders' equity
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3.74 | 3.64 | |||||||||||||||||||||||||||||||
Other expenses (net of other income)
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Interest expense
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- before tax
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(4,559 | ) | (4,559 | ) | (13,675 | ) | (14,056 | ) | ||||||||||||||||||||||||
- after tax
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(2,963 | ) | (0.05 | ) | (2,963 | ) | (0.05 | ) | (8,888 | ) | (0.16 | ) | (9,136 | ) | (0.17 | ) | |||||||||||||||||
Other Income (Expense) - after tax
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$ | 2,105 | 0.03 | $ | (992 | ) | (0.01 | ) | $ | (6,333 | ) | (0.11 | ) | $ | (9,177 | ) | (0.16 | ) | |||||||||||||||
Diluted weighted avg shares outstanding
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54,183 | 54,573 | 55,172 | 54,390 |
Selective Insurance Group, Inc. and Consolidated Subsidiaries
GAAP Investment Income
(unaudited)
($ in thousands)
For the three months ended
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%
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Year to Date
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%
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September
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September
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Increase
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September
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September
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Increase
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2011
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2010
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(Decrease)
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2011
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2010
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(Decrease)
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Investment Income:
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Interest:
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Fixed Maturity Securities
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$ | 31,960 | 31,741 | 1 | $ | 97,835 | 97,914 | - | |||||||||||||||||
Short-term
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28 | 134 | (79 | ) | 123 | 367 | (66 | ) | |||||||||||||||||
Alternative Investments
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4,453 | 2,359 | 89 | 23,994 | 11,122 | 116 | |||||||||||||||||||
Dividends
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1,197 | 347 | 245 | 2,299 | 1,279 | 80 | |||||||||||||||||||
Miscellaneous
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41 | 41 | - | 88 | 94 | (6 | ) | ||||||||||||||||||
37,679 | 34,622 | 9 | 124,339 | 110,776 | 12 | ||||||||||||||||||||
Investment Expense
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1,893 | 1,636 | 16 | 5,735 | 6,539 | (12 | ) | ||||||||||||||||||
Net Investment Income Before Tax
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35,786 | 32,986 | 8 | 118,604 | 104,237 | 14 | |||||||||||||||||||
Tax
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8,810 | 7,681 | 15 | 30,083 | 24,179 | 24 | |||||||||||||||||||
Net Investment Income After Tax
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26,976 | 25,305 | 7 | $ | 88,521 | 80,058 | 11 | ||||||||||||||||||
Net Investment Income per Share
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$ | 0.50 | 0.46 | 9 | $ | 1.60 | 1.47 | 9 | |||||||||||||||||
Effective Tax Rate
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24.6 | % | 23.3 | % | 25.4 | % | 23.2 | % | |||||||||||||||||
Average Yields :
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Fixed Maturity Securities:
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Pre Tax
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3.46 | % | 3.60 | % | |||||||||||||||||||||
After Tax
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2.66 | % | 2.81 | % | |||||||||||||||||||||
Portfolio:
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Pre Tax
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3.96 | % | 3.59 | % | |||||||||||||||||||||
After Tax
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2.95 | % | 2.75 | % | |||||||||||||||||||||
For the three months ended
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Year to date:
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September
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September
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September
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September
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Net Realized Gains(Losses)
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2011 | 2010 | 2011 | 2010 | |||||||||||||||||||||
Total Fixed Maturities
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262 | 1,791 | 1,497 | (14,806 | ) | ||||||||||||||||||||
Total Equity Securities
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(2,307 | ) | (1,734 | ) | 4,364 | 11,535 | |||||||||||||||||||
Total
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(2,045 | ) | 57 | 5,861 | (3,271 | ) | |||||||||||||||||||
Net of Tax
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(1,329 | ) | 37 | 3,810 | (2,126 | ) | |||||||||||||||||||
As of September 30, 2011 new money rates for taxable fixed maturity securities were 2.53% on a pre-tax basis and 1.65% on an after-tax basis.
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Selective Insurance Group, Inc.
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2011 Statutory Results by Line of Business
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3rd Qtr 2011 (unaudited)
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($ in thousands)
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Net
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Net
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Underwriting
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Dividends to
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Premiums
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Percent
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Premiums
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Percent
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Loss
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LAE
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Expense
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Policyholders
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Combined Ratio
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Combined Ratio
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Underwriting
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Written
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Change
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Earned
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Change
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Ratio
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Ratio
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Ratio
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Ratio
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2011
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2010
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Gain/(Loss)
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Personal Lines:
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Homeowners
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$ | 31,054 | 9.9 | % | $ | 25,923 | 15.0 | % | 168.8 | % | 8.7 | % | 29.9 | % | 0.0 | % | 207.4 | % | 108.4 | % | $ | (29,374 | ) | |||||||||||||||||||||
Auto
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38,406 | (0.1 | )% | 37,372 | 4.0 | % | 76.0 | % | 10.4 | % | 30.3 | % | 0.0 | % | 116.7 | % | 109.0 | % | (6,537 | ) | ||||||||||||||||||||||||
Other (including flood)
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3,676 | 8.0 | % | 3,305 | 9.7 | % | 94.7 | % | (141.6 | )% | (47.4 | )% | 0.0 | % | (94.3 | )% | (5.4 | )% | 6,599 | |||||||||||||||||||||||||
Total
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$ | 73,136 | 4.3 | % | $ | 66,600 | 8.3 | % | 113.0 | % | 2.2 | % | 26.2 | % | 0.0 | % | 141.4 | % | 103.2 | % | $ | (29,311 | ) | |||||||||||||||||||||
Commercial Lines:
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Commerical property
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$ | 55,725 | 3.6 | % | $ | 48,050 | (3.0 | )% | 107.3 | % | 5.8 | % | 34.9 | % | 0.1 | % | 148.1 | % | 90.2 | % | $ | (25,770 | ) | |||||||||||||||||||||
Workers compensation
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64,269 | 10.8 | % | 63,497 | 3.8 | % | 71.7 | % | 15.8 | % | 25.3 | % | 1.4 | % | 114.2 | % | 130.2 | % | (9,183 | ) | ||||||||||||||||||||||||
General liability
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95,187 | 13.1 | % | 87,480 | 5.1 | % | 44.9 | % | 19.2 | % | 31.8 | % | 0.0 | % | 95.9 | % | 99.1 | % | 1,176 | |||||||||||||||||||||||||
Auto
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76,031 | 0.8 | % | 70,173 | (4.4 | )% | 57.6 | % | 8.2 | % | 30.0 | % | 0.1 | % | 95.9 | % | 83.3 | % | 1,153 | |||||||||||||||||||||||||
Business owners policies
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16,514 | 5.6 | % | 16,663 | 1.6 | % | 74.4 | % | 13.0 | % | 38.9 | % | 0.0 | % | 126.3 | % | 105.7 | % | (4,328 | ) | ||||||||||||||||||||||||
Bonds
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5,019 | (5.2 | )% | 4,727 | (3.2 | )% | 19.2 | % | 10.5 | % | 58.3 | % | 0.0 | % | 88.0 | % | 76.3 | % | 399 | |||||||||||||||||||||||||
Other
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10,950 | 296.2 | % | 1,773 | (29.9 | )% | 16.2 | % | 9.7 | % | 57.0 | % | 0.0 | % | 82.9 | % | 47.6 | % | (4,919 | ) | ||||||||||||||||||||||||
Total
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$ | 323,696 | 9.7 | % | $ | 292,363 | 0.4 | % | 65.1 | % | 13.1 | % | 32.1 | % | 0.4 | % | 110.7 | % | 99.8 | % | $ | (41,472 | ) | |||||||||||||||||||||
Grand Total
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$ | 396,832 | 8.7 | % | $ | 358,963 | 1.8 | % | 74.0 | % | 11.1 | % | 31.0 | % | 0.3 | % | 116.4 | % | 100.3 | % | $ | (70,783 | ) | |||||||||||||||||||||
Note: Some amounts may not foot due to rounding.
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2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||||
Losses Paid
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$ | 215,140 | $ | 219,404 | ||||||||||||||||||||||||||||||||||||||||
LAE Paid
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35,243 | 40,101 | ||||||||||||||||||||||||||||||||||||||||||
Total Paid
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$ | 250,383 | $ | 259,505 | ||||||||||||||||||||||||||||||||||||||||
Selective Insurance Group, Inc.
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2011 Statutory Results by Line of Business
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September 2011 YTD (unaudited)
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($ in thousands)
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Net
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Net
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Underwriting
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Dividends to
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Premiums
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Percent
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Premiums
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Percent
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Loss
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LAE
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Expense
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Policyholders
|
Combined Ratio
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Combined Ratio
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Underwriting
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Written
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Change
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Earned
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Change
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Ratio
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Ratio
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Ratio
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Ratio
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2011
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2010
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Gain/(Loss)
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Personal Lines:
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Homeowners
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$ | 81,962 | 14.4 | % | $ | 75,538 | 17.7 | % | 109.7 | % | 8.8 | % | 31.0 | % | 0.0 | % | 149.5 | % | 110.1 | % | $ | (39,363 | ) | |||||||||||||||||||||
Auto
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114,024 | 1.6 | % | 111,522 | 5.7 | % | 75.2 | % | 10.9 | % | 30.6 | % | 0.0 | % | 116.7 | % | 112.3 | % | (19,438 | ) | ||||||||||||||||||||||||
Other (including flood)
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9,849 | 9.4 | % | 9,404 | 1.0 | % | 88.2 | % | (60.7 | )% | (47.1 | )% | 0.0 | % | (19.6 | )% | (3.6 | )% | 11,456 | |||||||||||||||||||||||||
Total
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$ | 205,835 | 6.7 | % | $ | 196,464 | 9.8 | % | 89.1 | % | 6.6 | % | 27.1 | % | 0.0 | % | 122.8 | % | 105.9 | % | $ | (47,345 | ) | |||||||||||||||||||||
Commercial Lines:
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Commerical property
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$ | 153,105 | (0.2 | )% | $ | 144,121 | (4.0 | )% | 79.5 | % | 5.7 | % | 36.5 | % | 0.1 | % | 121.8 | % | 96.3 | % | $ | (34,684 | ) | |||||||||||||||||||||
Workers compensation
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198,742 | 6.0 | % | 189,878 | 1.1 | % | 74.6 | % | 15.9 | % | 25.3 | % | 1.9 | % | 117.7 | % | 124.4 | % | (35,891 | ) | ||||||||||||||||||||||||
General liability
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274,422 | 6.7 | % | 255,717 | 1.3 | % | 49.2 | % | 17.8 | % | 32.7 | % | 0.0 | % | 99.7 | % | 95.1 | % | (5,283 | ) | ||||||||||||||||||||||||
Auto
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220,500 | (1.4 | )% | 209,042 | (5.4 | )% | 55.8 | % | 7.0 | % | 30.6 | % | 0.1 | % | 93.5 | % | 87.4 | % | 10,012 | |||||||||||||||||||||||||
Business owners policies
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49,657 | 1.6 | % | 49,555 | 1.5 | % | 67.3 | % | 13.3 | % | 39.0 | % | 0.0 | % | 119.6 | % | 121.5 | % | (9,737 | ) | ||||||||||||||||||||||||
Bonds
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14,655 | (3.2 | )% | 14,219 | (0.7 | )% | 15.0 | % | 8.1 | % | 60.2 | % | 0.0 | % | 83.3 | % | 81.3 | % | 2,112 | |||||||||||||||||||||||||
Other
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16,254 | 103.9 | % | 6,890 | (8.7 | )% | 5.8 | % | 2.6 | % | 52.5 | % | 0.0 | % | 60.9 | % | 47.0 | % | (2,214 | ) | ||||||||||||||||||||||||
Total
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$ | 927,335 | 3.8 | % | $ | 869,422 | (1.4 | )% | 61.5 | % | 12.3 | % | 32.4 | % | 0.4 | % | 106.6 | % | 100.5 | % | $ | (75,686 | ) | |||||||||||||||||||||
Grand Total
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$ | 1,133,170 | 4.3 | % | $ | 1,065,886 | 0.4 | % | 66.6 | % | 11.2 | % | 31.4 | % | 0.4 | % | 109.6 | % | 101.4 | % | $ | (123,032 | ) | |||||||||||||||||||||
Note: Some amounts may not foot due to rounding.
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2011 | 2010 | |||||||||||||||||||||||||||||||||||||||||||
Losses Paid
|
$ | 612,066 | $ | 588,974 | ||||||||||||||||||||||||||||||||||||||||
LAE Paid
|
113,151 | 114,703 | ||||||||||||||||||||||||||||||||||||||||||
Total Paid
|
$ | 725,217 | $ | 703,677 | ||||||||||||||||||||||||||||||||||||||||
SELECTIVE INSURANCE GROUP, INC.
|
Unaudited
|
|||||||
CONSOLIDATED BALANCE SHEETS
|
September 30,
|
December 31,
|
||||||
($ in thousands, except share amounts)
|
2011
|
2010
|
||||||
ASSETS
|
||||||||
Investments:
|
||||||||
Fixed maturity securities, held-to-maturity – at carrying value
|
||||||||
(fair value: $901,385 – 2011; $1,256,294 – 2010)
|
$ | 852,843 | 1,214,324 | |||||
Fixed maturity securities, available-for-sale – at fair value
|
||||||||
(amortized cost: $2,649,035 – 2011; $2,285,988 – 2010)
|
2,772,348 | 2,342,742 | ||||||
Equity securities, available-for-sale – at fair value
|
||||||||
(cost of: $150,517 – 2011; $58,039 – 2010)
|
139,203 | 69,636 | ||||||
Short-term investments (at cost which approximates fair value)
|
162,812 | 161,155 | ||||||
Other investments
|
135,560 | 137,865 | ||||||
Total investments
|
4,062,766 | 3,925,722 | ||||||
Cash
|
287 | 645 | ||||||
Interest and dividends due or accrued
|
35,107 | 37,007 | ||||||
Premiums receivable, net of allowance for uncollectible
|
||||||||
accounts of: $3,863 – 2011; $4,691 – 2010
|
477,869 | 414,105 | ||||||
Reinsurance recoverables, net
|
631,732 | 318,752 | ||||||
Prepaid reinsurance premiums
|
121,560 | 110,327 | ||||||
Current federal income tax
|
17,518 | 11,200 | ||||||
Deferred federal income tax
|
83,299 | 93,234 | ||||||
Property and equipment – at cost, net of accumulated
|
||||||||
depreciation and amortization of: $158,383 – 2011; $151,704 – 2010
|
39,247 | 41,775 | ||||||
Deferred policy acquisition costs
|
220,044 | 209,627 | ||||||
Goodwill
|
7,849 | 7,849 | ||||||
Other assets
|
51,712 | 61,529 | ||||||
Total assets
|
$ | 5,748,990 | 5,231,772 | |||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Liabilities:
|
||||||||
Reserve for losses and loss expenses
|
$ | 3,243,622 | 2,830,058 | |||||
Unearned premiums
|
902,112 | 823,596 | ||||||
Notes payable
|
262,353 | 262,333 | ||||||
Accrued salaries and benefits
|
98,485 | 100,933 | ||||||
Other liabilities
|
155,863 | 143,743 | ||||||
Total liabilities
|
$ | 4,662,435 | 4,160,663 | |||||
Stockholders’ Equity:
|
||||||||
Preferred stock of $0 par value per share:
|
||||||||
Authorized shares: 5,000,000; no shares issued or outstanding
|
$ | - | - | |||||
Common stock of $2 par value per share
|
||||||||
Authorized shares: 360,000,000
|
||||||||
Issued: 97,044,503 – 2011; 96,362,667 – 2010
|
194,089 | 192,725 | ||||||
Additional paid-in capital
|
253,939 | 244,613 | ||||||
Retained earnings
|
1,158,308 | 1,176,155 | ||||||
Accumulated other comprehensive income
|
32,164 | 7,024 | ||||||
Treasury stock – at cost (shares: 42,823,871 – 2011; 42,686,204 – 2010)
|
(551,945 | ) | (549,408 | ) | ||||
Total stockholders’ equity
|
1,086,555 | 1,071,109 | ||||||
Commitments and contingencies
|
||||||||
Total liabilities and stockholders’ equity
|
$ | 5,748,990 | 5,231,772 |
SELECTIVE INSURANCE GROUP, INC.
|
||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
|
Quarter ended
|
Nine Months ended
|
||||||||||||||
September 30,
|
September 30,
|
|||||||||||||||
($ in thousands, except per share amounts)
|
2011
|
2010
|
2011
|
2010
|
||||||||||||
Revenues:
|
||||||||||||||||
Net premiums earned
|
$ | 358,963 | 354,709 | 1,065,886 | 1,063,101 | |||||||||||
Net investment income earned
|
35,786 | 32,986 | 118,604 | 104,237 | ||||||||||||
Net realized gains (losses):
|
||||||||||||||||
Net realized investment gains (losses)
|
498 | 2,864 | 9,203 | 13,960 | ||||||||||||
Other-than-temporary impairments
|
(2,693 | ) | (4,091 | ) | (3,062 | ) | (16,326 | ) | ||||||||
Other-than-temporary impairments on fixed maturity securities
|
||||||||||||||||
recognized in other comprehensive income
|
150 | 1,284 | (280 | ) | (905 | ) | ||||||||||
Total net realized gains (losses)
|
(2,045 | ) | 57 | 5,861 | (3,271 | ) | ||||||||||
Other income
|
1,365 | 1,950 | 6,744 | 6,465 | ||||||||||||
Total revenues
|
394,069 | 389,702 | 1,197,095 | 1,170,532 | ||||||||||||
Expenses:
|
||||||||||||||||
Losses and loss expenses incurred
|
305,958 | 245,019 | 829,719 | 739,142 | ||||||||||||
Policy acquisition costs
|
119,456 | 114,042 | 346,729 | 346,143 | ||||||||||||
Interest expense
|
4,559 | 4,559 | 13,675 | 14,056 | ||||||||||||
Other expenses
|
4,924 | 4,022 | 18,807 | 18,636 | ||||||||||||
Total expenses
|
434,897 | 367,642 | 1,208,930 | 1,117,977 | ||||||||||||
(Loss) income from continuing operations, before federal income tax
|
(40,828 | ) | 22,060 | (11,835 | ) | 52,555 | ||||||||||
Federal income tax (benefit) expense:
|
||||||||||||||||
Current
|
(20,001 | ) | (1,691 | ) | (12,614 | ) | 8,475 | |||||||||
Deferred
|
(1,335 | ) | 4,920 | (3,603 | ) | (1,435 | ) | |||||||||
Total federal income tax (benefit) expense
|
(21,336 | ) | 3,229 | (16,217 | ) | 7,040 | ||||||||||
Net (loss) income from continuing operations
|
(19,492 | ) | 18,831 | 4,382 | 45,515 | |||||||||||
Loss on disposal of discontinued operations, net of tax of $(350) and
$(880) for Third Quarter 2011 and 2010 and $(350) and $(2,019) for
|
||||||||||||||||
Nine Months 2011 and 2010
|
(650 | ) | (1,634 | ) | (650 | ) | (3,749 | ) | ||||||||
Net (loss) income
|
$ | (20,142 | ) | 17,197 | 3,732 | 41,766 | ||||||||||
Earnings per share:
|
||||||||||||||||
Basic net (loss) income from continuing operations
|
(0.36 | ) | 0.35 | 0.08 | 0.85 | |||||||||||
Basic net loss from disposal of discontinued operations
|
(0.01 | ) | (0.03 | ) | (0.01 | ) | (0.07 | ) | ||||||||
Basic net (loss) income
|
$ | (0.37 | ) | 0.32 | 0.07 | 0.78 | ||||||||||
Diluted net (loss) income from continuing operations
|
(0.36 | ) | 0.35 | 0.08 | 0.84 | |||||||||||
Diluted net loss from disposal of discontinued operations
|
(0.01 | ) | (0.03 | ) | (0.01 | ) | (0.07 | ) | ||||||||
Diluted net (loss) income
|
$ | (0.37 | ) | 0.32 | 0.07 | 0.77 | ||||||||||
Dividends to stockholders
|
$ | 0.13 | 0.13 | 0.39 | 0.39 |
SELECTIVE INSURANCE GROUP, INC.
|
||||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF
|
||||||||||||||||
STOCKHOLDERS’ EQUITY
|
||||||||||||||||
Nine Months ended September 30,
|
||||||||||||||||
($ in thousands, except per share amounts)
|
2011
|
2010
|
||||||||||||||
Common stock:
|
||||||||||||||||
Beginning of year
|
$ | 192,725 | 191,646 | |||||||||||||
Dividend reinvestment plan
|
||||||||||||||||
(shares: 74,777 – 2011; 81,471 – 2010)
|
150 | 163 | ||||||||||||||
Stock purchase and compensation plans
|
||||||||||||||||
(shares: 607,059 – 2011; 284,793 – 2010)
|
1,214 | 569 | ||||||||||||||
End of period
|
194,089 | 192,378 | ||||||||||||||
Additional paid-in capital:
|
||||||||||||||||
Beginning of year
|
244,613 | 231,933 | ||||||||||||||
Dividend reinvestment plan
|
1,066 | 1,098 | ||||||||||||||
Stock purchase and compensation plans
|
8,260 | 8,441 | ||||||||||||||
End of period
|
253,939 | 241,472 | ||||||||||||||
Retained earnings:
|
||||||||||||||||
Beginning of year
|
1,176,155 | 1,138,978 | ||||||||||||||
Net income
|
3,732 | 3,732 | 41,766 | 41,766 | ||||||||||||
Dividends to stockholders ($0.39 per share – 2011 and 2010)
|
(21,579 | ) | (21,248 | ) | ||||||||||||
End of period
|
1,158,308 | 1,159,496 | ||||||||||||||
Accumulated other comprehensive income (loss):
|
||||||||||||||||
Beginning of year
|
7,024 | (12,460 | ) | |||||||||||||
Other comprehensive income (loss), increase (decrease) in:
|
||||||||||||||||
Unrealized gains on investment securities:
|
||||||||||||||||
Non-credit portion of other-than-temporary impairment losses
|
||||||||||||||||
recognized in other comprehensive income, net of deferred income tax
|
336 | 3,026 | ||||||||||||||
Other net unrealized gains on investment securities, net of
|
||||||||||||||||
deferred income tax
|
22,617 | 55,556 | ||||||||||||||
Total unrealized gains on investment securities
|
22,953 | 22,953 | 58,582 | 58,582 | ||||||||||||
Defined benefit pension plans, net of deferred income tax
|
2,187 | 2,187 | 2,098 | 2,098 | ||||||||||||
End of period
|
32,164 | 48,220 | ||||||||||||||
Comprehensive income
|
28,872 | 102,446 | ||||||||||||||
Treasury stock:
|
||||||||||||||||
Beginning of year
|
(549,408 | ) | (547,722 | ) | ||||||||||||
Acquisition of treasury stock
|
||||||||||||||||
(shares: 137,667 – 2011; 98,419 – 2010)
|
(2,537 | ) | (1,528 | ) | ||||||||||||
End of period
|
(551,945 | ) | (549,250 | ) | ||||||||||||
Total stockholders’ equity
|
$ | 1,086,555 | 1,092,316 |
SELECTIVE INSURANCE GROUP, INC.
|
||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW
|
Nine Months ended
|
|||||||
September 30,
|
||||||||
($ in thousands)
|
2011
|
2010
|
||||||
Operating Activities
|
||||||||
Net Income
|
$ | 3,732 | 41,766 | |||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
25,260 | 23,175 | ||||||
Loss on disposal of discontinued operations
|
650 | 3,749 | ||||||
Stock-based compensation expense
|
6,383 | 6,875 | ||||||
Undistributed income of equity method investments
|
(1,793 | ) | (6,338 | ) | ||||
Net realized (gains) losses
|
(5,861 | ) | 3,271 | |||||
Changes in assets and liabilities:
|
||||||||
Increase in reserves for losses and loss expenses, net of reinsurance recoverables
|
100,584 | 32,912 | ||||||
Increase in unearned premiums, net of prepaid reinsurance and advance premiums
|
67,816 | 25,123 | ||||||
Increase in net federal income tax recoverable
|
(9,570 | ) | (6,514 | ) | ||||
Increase in premiums receivable
|
(63,764 | ) | (13,817 | ) | ||||
(Increase) decrease in deferred policy acquisition costs
|
(10,417 | ) | 11 | |||||
Decrease (increase) in interest and dividends due or accrued
|
1,943 | (1,491 | ) | |||||
(Decrease) increase in accrued salaries and benefits
|
(2,448 | ) | 150 | |||||
Decrease in accrued insurance expenses
|
(6,772 | ) | (6,872 | ) | ||||
Other-net
|
20,817 | 1,284 | ||||||
Net adjustments
|
122,828 | 61,518 | ||||||
Net cash provided by operating activities
|
126,560 | 103,284 | ||||||
Investing Activities
|
||||||||
Purchase of fixed maturity securities, available-for-sale
|
(350,140 | ) | (699,133 | ) | ||||
Purchase of equity securities, available-for-sale
|
(148,104 | ) | (47,930 | ) | ||||
Purchase of other investments
|
(11,778 | ) | (14,348 | ) | ||||
Purchase of short-term investments
|
(1,030,834 | ) | (1,409,971 | ) | ||||
Sale of subsidiary
|
919 | 681 | ||||||
Sale of fixed maturity securities, available-for-sale
|
85,773 | 157,823 | ||||||
Sale of short-term investments
|
1,029,178 | 1,358,779 | ||||||
Redemption and maturities of fixed maturity securities, held-to-maturity
|
138,907 | 238,923 | ||||||
Redemption and maturities of fixed maturity securities, available-for-sale
|
95,951 | 251,875 | ||||||
Sale of equity securities, available-for-sale
|
59,991 | 76,277 | ||||||
Distributions from other investments
|
15,666 | 18,468 | ||||||
Sale of other investments
|
16,357 | - | ||||||
Purchase of property, equipment and other assets
|
(8,932 | ) | (4,062 | ) | ||||
Net cash used in investing activities
|
(107,046 | ) | (72,618 | ) | ||||
Financing Activities
|
||||||||
Dividends to stockholders
|
(19,863 | ) | (19,516 | ) | ||||
Acquisition of treasury stock
|
(2,537 | ) | (1,528 | ) | ||||
Principal payment of notes payable
|
- | (12,300 | ) | |||||
Net proceeds from stock purchase and compensation plans
|
2,718 | 3,084 | ||||||
Excess tax benefits from share-based payment arrangements
|
(190 | ) | (795 | ) | ||||
Net cash used in financing activities
|
(19,872 | ) | (31,055 | ) | ||||
Net decrease in cash
|
(358 | ) | (389 | ) | ||||
Cash, beginning of year
|
645 | 811 | ||||||
Cash, end of period
|
$ | 287 | 422 |
Selective Insurance Group, Inc.
|
||||||||||||
Combined Insurance Company Subsidiaries
|
||||||||||||
Unaudited Statutory Balance Sheets
|
||||||||||||
($ in thousands)
|
||||||||||||
Sep-30
|
Sep-30
|
Dec-31
|
||||||||||
2011
|
2010
|
2010
|
||||||||||
ASSETS
|
||||||||||||
Bonds
|
$ | 3,482,530 | 3,355,540 | 3,482,204 | ||||||||
Common stocks
|
139,203 | 63,116 | 69,636 | |||||||||
Affiliated mortgage loan
|
38,297 | 38,944 | 38,785 | |||||||||
Other investments
|
162,689 | 190,958 | 174,067 | |||||||||
Short-term investments
|
109,468 | 212,664 | 111,021 | |||||||||
Total investments
|
3,932,187 | 3,861,222 | 3,875,713 | |||||||||
Cash on hand and in banks
|
(49,209 | ) | (33,420 | ) | (30,343 | ) | ||||||
Interest and dividends due and accrued
|
35,173 | 36,448 | 37,172 | |||||||||
Premiums receivable
|
475,442 | 456,588 | 410,809 | |||||||||
Reinsurance recoverable on paid losses and expenses
|
9,376 | 6,097 | 5,013 | |||||||||
Federal income tax recoverable
|
7,001 | 14,679 | - | |||||||||
Deferred tax recoverable
|
135,884 | 123,873 | 133,100 | |||||||||
EDP equipment
|
1,004 | 1,331 | 1,409 | |||||||||
Equities and deposits in pools and associations
|
9,625 | 7,530 | 6,681 | |||||||||
Receivable for sold securities
|
14 | 23,698 | 16,738 | |||||||||
Other assets
|
29,334 | 31,964 | 30,164 | |||||||||
Total assets
|
$ | 4,585,831 | 4,530,010 | 4,486,456 | ||||||||
LIABILITIES
|
||||||||||||
Reserve for losses
|
$ | 2,209,177 | 2,100,648 | 2,111,557 | ||||||||
Reinsurance payable on paid loss and loss expense
|
1,243 | 1,191 | 1,030 | |||||||||
Reserve for loss expenses
|
408,024 | 404,738 | 401,508 | |||||||||
Unearned premiums
|
780,552 | 764,953 | 713,268 | |||||||||
Reserve for commissions payable
|
39,987 | 41,525 | 43,590 | |||||||||
Ceded balances payable
|
10,746 | 13,313 | 12,835 | |||||||||
Federal income tax payable
|
- | - | 1,645 | |||||||||
Premium and other taxes payable
|
20,291 | 23,129 | 23,466 | |||||||||
Borrowed money
|
13,017 | 13,017 | 13,018 | |||||||||
Reserve for dividends to policyholders
|
3,451 | 2,568 | 2,390 | |||||||||
Reserves for unauthorized reinsurance
|
1,811 | 1,013 | 1,811 | |||||||||
Payable for securities
|
976 | 45,918 | 5,028 | |||||||||
Funds withheld on account of others
|
5,690 | 5,771 | 7,015 | |||||||||
Accrued salaries and benefits
|
63,306 | 64,405 | 61,353 | |||||||||
Other liabilities
|
17,416 | 13,500 | 13,917 | |||||||||
Total liabilities
|
3,575,687 | 3,495,689 | 3,413,431 | |||||||||
POLICYHOLDERS' SURPLUS
|
||||||||||||
Capital
|
28,325 | 28,325 | 28,325 | |||||||||
Aggregate write-ins for special surplus funds
|
39,055 | 34,971 | 40,521 | |||||||||
Paid in surplus
|
255,792 | 255,792 | 255,792 | |||||||||
Unassigned surplus
|
686,972 | 715,233 | 748,387 | |||||||||
Total policyholders' surplus
|
1,010,144 | 1,034,321 | 1,073,025 | |||||||||
Total liabilities and policyholders' surplus
|
$ | 4,585,831 | 4,530,010 | 4,486,456 |
Selective Insurance Group, Inc.
|
Combined Insurance Company Subsidiaries
|
Unaudited Statutory Statements Of Income
|
($ in thousands)
|
Three Months Ended
|
Nine Months Ended
|
|||||||||||||||||||||||||||
September
|
September
|
|||||||||||||||||||||||||||
UNDERWRITING
|
2011
|
2010
|
2011
|
2010
|
||||||||||||||||||||||||
Net premiums written
|
$ | 396,832 | 365,129 | 1,133,170 | 1,086,744 | |||||||||||||||||||||||
Net premiums earned
|
358,963 | 352,723 | 1,065,886 | 1,061,115 | ||||||||||||||||||||||||
Net losses paid
|
215,140 | 219,404 | 612,066 | 588,974 | ||||||||||||||||||||||||
Change in reserve for losses
|
50,591 | (16,787 | ) | 97,620 | 28,272 | |||||||||||||||||||||||
Net losses incurred
|
265,731 | 74.0 | % | 202,617 | 57.4 | % | 709,686 | 66.6 | % | 617,246 | 58.2 | % | ||||||||||||||||
Net loss expenses paid
|
35,243 | 40,101 | 113,151 | 114,703 | ||||||||||||||||||||||||
Change in reserve for loss expenses
|
4,449 | 608 | 6,516 | 5,281 | ||||||||||||||||||||||||
Net loss expenses incurred
|
39,692 | 11.1 | % | 40,709 | 11.5 | % | 119,667 | 11.2 | % | 119,984 | 11.3 | % | ||||||||||||||||
Net underwriting expenses incurred
|
123,316 | 31.0 | % | 114,210 | 31.3 | % | 358,447 | 31.6 | % | 346,042 | 31.8 | % | ||||||||||||||||
Total deductions
|
428,739 | 357,536 | 1,187,800 | 1,083,272 | ||||||||||||||||||||||||
Statutory underwriting loss
|
(69,776 | ) | (4,813 | ) | (121,914 | ) | (22,157 | ) | ||||||||||||||||||||
Net loss from premium balances charged off
|
(1,300 | ) | (1,239 | ) | (4,003 | ) | (4,085 | ) | ||||||||||||||||||||
Finance charges and other income
|
1,349 | 2,005 | 6,688 | 6,683 | ||||||||||||||||||||||||
Total other income
|
49 | 0.0 | % | 766 | -0.2 | % | 2,685 | -0.2 | % | 2,598 | -0.2 | % | ||||||||||||||||
Policyholders' dividends incurred
|
(1,056 | ) | 0.3 | % | (728 | ) | 0.2 | % | (3,803 | ) | 0.4 | % | (2,867 | ) | 0.3 | % | ||||||||||||
Total underwriting loss
|
(70,783 | ) | 116.4 | % | (4,775 | ) | 100.3 | % | (123,032 | ) | 109.6 | % | (22,426 | ) | 101.4 | % | ||||||||||||
INVESTMENT
|
||||||||||||||||||||||||||||
Net investment income earned
|
34,967 | 31,750 | 117,546 | 98,659 | ||||||||||||||||||||||||
Net realized gain / (loss)
|
(2,061 | ) | (108 | ) | 5,816 | (3,373 | ) | |||||||||||||||||||||
Total income before income tax
|
(37,877 | ) | 26,867 | 330 | 72,860 | |||||||||||||||||||||||
Federal income tax (benefit) / expense
|
(14,525 | ) | 990 | (2,241 | ) | 17,304 | ||||||||||||||||||||||
Net (loss) / income
|
$ | (23,352 | ) | 25,877 | 2,571 | 55,556 | ||||||||||||||||||||||
Policyholders' Surplus
|
||||||||||||||||||||||||||||
Surplus, beginning of period
|
$ | 1,070,297 | 1,008,534 | 1,073,025 | 981,955 | |||||||||||||||||||||||
Net (loss) / income
|
(23,352 | ) | 25,877 | 2,571 | 55,556 | |||||||||||||||||||||||
Change in deferred taxes
|
4,551 | (8,831 | ) | 5,471 | (772 | ) | ||||||||||||||||||||||
Change in unrealized gains
|
(12,286 | ) | 6,771 | (13,446 | ) | 13,692 | ||||||||||||||||||||||
Dividends to stockholders
|
(17,006 | ) | (12,003 | ) | (46,018 | ) | (36,008 | ) | ||||||||||||||||||||
Change in non-admitted assets
|
(10,894 | ) | 15,279 | (8,712 | ) | 19,114 | ||||||||||||||||||||||
Change in additional admitted deferred taxes
|
115 | (1,446 | ) | (1,466 | ) | 1,020 | ||||||||||||||||||||||
Surplus adjustments
|
(1,281 | ) | 140 | (1,281 | ) | (236 | ) | |||||||||||||||||||||
Net change in surplus for period
|
(60,153 | ) | 25,787 | (62,881 | ) | 52,366 | ||||||||||||||||||||||
Surplus, end of period
|
$ | 1,010,144 | 1,034,321 | 1,010,144 | 1,034,321 | |||||||||||||||||||||||
Statutory underwriting loss
|
$ | (70,783 | ) | (4,775 | ) | (123,032 | ) | (22,426 | ) | |||||||||||||||||||
Adjustments under GAAP:
|
||||||||||||||||||||||||||||
Deferred policy acquisition costs
|
3,859 | 390 | 10,417 | (11 | ) | |||||||||||||||||||||||
Pension costs
|
63 | 754 | 1,868 | 1,289 | ||||||||||||||||||||||||
Other, net
|
(1,263 | ) | (302 | ) | (1,143 | ) | (551 | ) | ||||||||||||||||||||
GAAP underwriting loss
|
$ | (68,124 | ) | (3,933 | ) | (111,890 | ) | (21,699 | ) | |||||||||||||||||||
Note: Some amounts or ratios may not foot due to rounding.
|
||||||||||||||||||||||||||||
Certain amounts have been reclassified to conform to the current year's presentation.
|
Selective Insurance Group, Inc. and Consolidated Subsidiaries
|
|||||||||||||||||||||||||
Alternative Investments
|
|||||||||||||||||||||||||
as of September 30, 2011
|
|||||||||||||||||||||||||
(unaudited)
|
|||||||||||||||||||||||||
Inception
|
Original
|
Remaining
|
Current
|
YTD
|
DPI(1)
|
TVPI(2)
|
|||||||||||||||||||
Fund
|
Year
|
Commitment
|
Commitment
|
Market Value
|
Income
|
Ratio
|
Ratio
|
||||||||||||||||||
Real Estate
|
|||||||||||||||||||||||||
Silverpeak RE II
|
2005
|
20,000,000 | 2,473,976 | 10,548,405 | 1,434,454 | 0.45 | 0.96 | ||||||||||||||||||
Silverpeak RE III
|
2008
|
15,000,000 | 8,127,743 | 3,484,704 | 50,621 | 0.01 | 0.52 | ||||||||||||||||||
Total - Real Estate
|
35,000,000 | 10,601,719 | 14,033,109 | 1,485,075 | 0.34 | 0.85 | |||||||||||||||||||
Mezzanine Financing
|
|||||||||||||||||||||||||
Neovara Euro Mezz
|
2004
|
9,000,000 | - | 1,298,790 | (610,120 | ) | 0.95 | 1.05 | |||||||||||||||||
GS Mezz V
|
2007
|
25,000,000 | 15,909,553 | 8,694,654 | 1,538,008 | 0.57 | 1.24 | ||||||||||||||||||
Total - Mezz. Financing
|
34,000,000 | 15,909,553 | 9,993,444 | 927,888 | 0.76 | 1.14 | |||||||||||||||||||
Distressed Debt
|
|||||||||||||||||||||||||
Varde VIII
|
2006
|
10,000,000 | - | 9,252,120 | (57,395 | ) | 0.22 | 1.15 | |||||||||||||||||
GS Distressed Opp III
|
2007
|
15,000,000 | 3,168,884 | 10,032,863 | 1,298,782 | 0.23 | 1.02 | ||||||||||||||||||
Total - Distressed Debt
|
25,000,000 | 3,168,884 | 19,284,983 | 1,241,387 | 0.23 | 1.07 | |||||||||||||||||||
Private Equity
|
|||||||||||||||||||||||||
Prospector
|
1997
|
5,000,000 | - | 411,265 | (179 | ) | 2.79 | 2.88 | |||||||||||||||||
Trilantic Capital Partners III
|
2004
|
10,000,000 | 1,226,685 | 4,182,468 | 1,604,200 | 1.27 | 1.72 | ||||||||||||||||||
NB Co-Invest
|
2006
|
15,000,000 | 1,847,495 | 9,986,580 | 1,986,128 | 0.53 | 1.24 | ||||||||||||||||||
Trilantic Capital Partners IV
|
2007
|
11,098,351 | 3,563,239 | 6,486,281 | 1,807,980 | 0.47 | 1.30 | ||||||||||||||||||
Total - Private Equity
|
41,098,351 | 6,637,419 | 21,066,594 | 5,398,129 | 1.02 | 1.60 | |||||||||||||||||||
Private Equity, Secondary Market
|
|||||||||||||||||||||||||
NB SOF
|
2005
|
12,000,000 | 899,494 | 6,722,098 | 924,459 | 0.62 | 1.23 | ||||||||||||||||||
GS Vintage IV
|
2007
|
20,000,000 | 5,277,941 | 15,088,262 | 3,451,307 | 0.37 | 1.21 | ||||||||||||||||||
NB SOF II
|
2008
|
12,000,000 | 4,869,961 | 7,266,555 | 1,519,022 | 0.37 | 1.36 | ||||||||||||||||||
Total - Pvt. Eq. Sec. Mkt.
|
44,000,000 | 11,047,396 | 29,076,915 | 5,894,788 | 0.45 | 1.24 | |||||||||||||||||||
Energy/Power Generation
|
|||||||||||||||||||||||||
ArcLight I
|
2002
|
15,000,000 | 1,655,505 | 330,194 | 1,157,765 | 1.80 | 1.82 | ||||||||||||||||||
ArcLight II
|
2003
|
15,000,000 | 2,295,492 | 4,298,335 | 1,631,668 | 1.15 | 1.38 | ||||||||||||||||||
ArcLight III
|
2006
|
15,000,000 | 2,037,794 | 10,597,801 | 2,071,450 | 0.60 | 1.27 | ||||||||||||||||||
Quintana Energy
|
2006
|
10,000,000 | 1,902,067 | 8,972,120 | 1,679,768 | 0.09 | 1.19 | ||||||||||||||||||
ArcLight IV
|
2007
|
10,000,000 | 2,404,868 | 6,593,611 | 1,058,360 | 0.57 | 1.24 | ||||||||||||||||||
Total - Energy/Power Generation
|
65,000,000 | 10,295,726 | 30,792,061 | 7,599,011 | 0.97 | 1.42 | |||||||||||||||||||
Venture Capital
|
|||||||||||||||||||||||||
Venture V
|
2001
|
10,000,000 | 900,000 | 7,909,078 | 1,448,062 | 0.27 | 1.14 | ||||||||||||||||||
Total - Venture Capital
|
10,000,000 | 900,000 | 7,909,078 | 1,448,062 | 0.27 | 1.14 | |||||||||||||||||||
TOTAL - ALTERNATIVE INVESTMENTS
|
$ | 254,098,351 | 58,560,697 | 132,156,184 | 23,994,340 | 0.69 | 1.27 | ||||||||||||||||||
(1) Distributed to paid in ratio
|
|||||||||||||||||||||||||
(2) Total value to paid in ratio
|
|||||||||||||||||||||||||
Note: Some amounts may not foot due to rounding
|
Selective Insurance Group, Inc. and Consolidated Subsidiaries
Municipal Bond Portfolio
State and Repayment Source Composition
September 30, 2011
($ in thousands)
(unaudited)
Exposure = 58% Held-to-Maturity; 42% Available-for-Sale
Repayment Source Composition by State
Market Values
State
|
Revenue
|
% of State
|
General
Obligation
(GO)-Local
|
% of State
|
General
Obligation
(GO)-State
|
% of State
|
TX -
Permanent
School Fund
(PSF)
|
% of State
|
Total
|
% of
Total
|
||||||||||||||||||||||||||||||
TX
|
59,322 | 57 | % | 44,381 | 42 | % | 1,090 | 1 | % | - | 0 | % | 104,793 | 8 | % | |||||||||||||||||||||||||
TX-PSF
|
- | 0 | % | - | 0 | % | - | 0 | % | 40,893 | 100 | % | 40,893 | 3 | % | |||||||||||||||||||||||||
WA
|
38,468 | 45 | % | 46,120 | 55 | % | - | 0 | % | - | 0 | % | 84,588 | 6 | % | |||||||||||||||||||||||||
AZ
|
66,671 | 91 | % | 6,984 | 9 | % | - | 0 | % | - | 0 | % | 73,655 | 6 | % | |||||||||||||||||||||||||
NC
|
23,975 | 34 | % | 24,328 | 34 | % | 22,846 | 32 | % | - | 0 | % | 71,149 | 5 | % | |||||||||||||||||||||||||
NY
|
68,107 | 100 | % | - | 0 | % | - | 0 | % | - | 0 | % | 68,107 | 5 | % | |||||||||||||||||||||||||
FL
|
58,817 | 100 | % | - | 0 | % | - | 0 | % | - | 0 | % | 58,817 | 4 | % | |||||||||||||||||||||||||
OH
|
32,973 | 61 | % | 13,699 | 25 | % | 7,327 | 14 | % | - | 0 | % | 53,999 | 4 | % | |||||||||||||||||||||||||
MN
|
6,435 | 12 | % | 5,097 | 10 | % | 41,540 | 78 | % | - | 0 | % | 53,072 | 4 | % | |||||||||||||||||||||||||
IL
|
28,414 | 58 | % | 20,310 | 42 | % | - | 0 | % | - | 0 | % | 48,724 | 4 | % | |||||||||||||||||||||||||
CO
|
17,191 | 36 | % | 29,005 | 60 | % | 1,830 | 4 | % | - | 0 | % | 48,026 | 4 | % | |||||||||||||||||||||||||
Pre-refunded
|
39,656 | 57 | % | 20,310 | 29 | % | 5,338 | 8 | % | 3,678 | 5 | % | 68,982 | 5 | % | |||||||||||||||||||||||||
Other
|
367,017 | 65 | % | 120,598 | 21 | % | 76,921 | 14 | % | - | 0 | % | 564,536 | 42 | % | |||||||||||||||||||||||||
Grand Total
|
807,046 | 60 | % | 330,832 | 25 | % | 156,892 | 12 | % | 44,571 | 3 | % | 1,339,341 | 100 | % |
Selective Insurance Group, Inc. and Consolidated Subsidiaries
|
|||||||||||
Credit Quality of Available-for-Sale Fixed Maturity Securities
|
|||||||||||
September 30, 2011
|
|||||||||||
($ in millions)
|
|||||||||||
(unaudited)
|
|||||||||||
Fair Value
|
Unrealized
Gain (Loss)
|
Average
Credit
Quality
|
|||||||||
AFS Fixed Maturity Portfolio:
|
|||||||||||
U.S. government obligations1
|
$ | 380.0 | 21.9 |
AA+
|
|||||||
Foreign government obligations
|
32.9 | 1.3 |
AA
|
||||||||
State and municipal obligations
|
561.5 | 37.3 |
AA+
|
||||||||
Corporate securities
|
1,125.6 | 40.5 | A | ||||||||
Mortgage-backed securities ("MBS")
|
593.6 | 22.0 |
AA
|
||||||||
Asset-backed securities ("ABS")
|
78.7 | 0.3 |
AAA
|
||||||||
Total AFS fixed maturity portfolio
|
$ | 2,772.3 | 123.3 |
AA-
|
|||||||
State and Municipal Obligations:
|
|||||||||||
Government obligations
|
$ | 296.8 | 21.3 |
AA+
|
|||||||
Special revenue obligations
|
264.7 | 16.0 |
AA
|
||||||||
Total state and municipal obligations
|
$ | 561.5 | 37.3 |
AA+
|
|||||||
Corporate Securities:
|
|||||||||||
Financial
|
$ | 349.0 | 3.7 | A+ | |||||||
Industrials
|
82.0 | 5.7 | A- | ||||||||
Utilities
|
68.9 | 2.7 |
BBB+
|
||||||||
Consumer discretion
|
98.0 | 3.7 | A- | ||||||||
Consumer staples
|
125.6 | 6.2 | A | ||||||||
Healthcare
|
149.0 | 9.7 |
AA-
|
||||||||
Materials
|
52.7 | 1.2 | A- | ||||||||
Energy
|
64.5 | 2.8 | A- | ||||||||
Information technology
|
74.0 | 2.2 | A+ | ||||||||
Telecommunications services
|
46.3 | 1.1 |
BBB+
|
||||||||
Other
|
15.6 | 1.5 |
AA+
|
||||||||
Total corporate securities
|
$ | 1,125.6 | 40.5 | A | |||||||
MBS:
|
|||||||||||
Government Guaranteed Agency commercial mortgage-backed securities ("CMBS")
|
$ | 78.0 | 5.8 |
AA+
|
|||||||
Non-agency CMBS
|
34.9 | (0.3 | ) | A | |||||||
Government Guaranteed Agency residential mortgage-backed securities ("RMBS")
|
101.3 | 5.5 |
AA+
|
||||||||
Other Agency RMBS
|
336.8 | 11.6 |
AA+
|
||||||||
Non-agency RMBS
|
34.6 | (0.6 | ) |
BBB-
|
|||||||
Alternative-A ("Alt-A") RMBS
|
8.0 | - |
AA+
|
||||||||
Total MBS
|
$ | 593.6 | 22.0 |
AA
|
|||||||
ABS:
|
|||||||||||
ABS
|
$ | 77.6 | 1.3 |
AAA
|
|||||||
Alt-A ABS3
|
0.4 | (1.0 | ) | D | |||||||
Sub-prime ABS2,3
|
0.7 | - | D | ||||||||
Total ABS
|
$ | 78.7 | 0.3 |
AAA
|
|||||||
1 U.S. Government includes coporate securities fully guaranteed by the FDIC.
|
|||||||||||
2 We define sub-prime exposure as exposure to direct and indirect investments in non-agency residential mortgages with average FICO® scores below 650.
|
|||||||||||
3 Alt-A ABS and sub-prime ABS each consist of one security that is currently expected by rating agencies to default on its obligations.
|
Selective Insurance Group, Inc. and Consolidated Subsidiaries
|
|||||||||||||||||||||||
Credit Quality of Held-to-Maturity Securities
|
|||||||||||||||||||||||
September 30, 2011
|
|||||||||||||||||||||||
($ in millions)
|
|||||||||||||||||||||||
(unaudited)
|
|||||||||||||||||||||||
Fair Value
|
Carry Value
|
Unrecognized
Holding
Gain (Loss)
|
Unrealized
Gain (Loss)
in Accumulated
Other
Comprehensive
Income
|
Total
Unrealized
Unrecognized
Gain (Loss)
|
Average
Credit
Quality
|
||||||||||||||||||
HTM Fixed Maturity Portfolio:
|
|||||||||||||||||||||||
Foreign government obligations
|
$ | 5.5 | 5.6 | (0.1 | ) | 0.3 | 0.2 |
AA+
|
|||||||||||||||
State and municipal obligations
|
777.8 | 745.0 | 32.8 | 15.7 | 48.5 |
AA
|
|||||||||||||||||
Corporate securities
|
72.2 | 64.5 | 7.7 | (2.6 | ) | 5.1 | A | ||||||||||||||||
Mortgage-backed securities
|
37.6 | 30.9 | 6.7 | (5.6 | ) | 1.1 |
AA
|
||||||||||||||||
Asset-backed securities
|
8.3 | 6.8 | 1.5 | (1.6 | ) | (0.1 | ) | A | |||||||||||||||
Total HTM fixed maturity portfolio
|
$ | 901.4 | 852.8 | 48.6 | 6.2 | 54.8 |
AA
|
||||||||||||||||
State and Municipal Obligations:
|
|||||||||||||||||||||||
Government obligations
|
$ | 235.4 | 226.0 | 9.4 | 7.4 | 16.8 |
AA
|
||||||||||||||||
Special revenue obligations
|
542.4 | 519.0 | 23.4 | 8.3 | 31.7 |
AA
|
|||||||||||||||||
Total state and municipal obligations
|
$ | 777.8 | 745.0 | 32.8 | 15.7 | 48.5 |
AA
|
||||||||||||||||
Corporate Securities:
|
|||||||||||||||||||||||
Financial
|
$ | 20.8 | 18.3 | 2.5 | (1.7 | ) | 0.8 | A- | |||||||||||||||
Industrials
|
20.5 | 17.7 | 2.8 | (0.8 | ) | 2.0 | A | ||||||||||||||||
Utilities
|
17.8 | 15.9 | 1.9 | (0.1 | ) | 1.8 | A | ||||||||||||||||
Consumer discretion
|
5.8 | 5.7 | 0.1 | 0.1 | 0.2 |
AA-
|
|||||||||||||||||
Consumer staples
|
5.2 | 5.0 | 0.2 | - | 0.2 | A | |||||||||||||||||
Materials
|
2.1 | 1.9 | 0.2 | (0.1 | ) | 0.1 |
BBB
|
||||||||||||||||
Total corporate securities
|
$ | 72.2 | 64.5 | 7.7 | (2.6 | ) | 5.1 | A | |||||||||||||||
MBS:
|
|||||||||||||||||||||||
Non-agency CMBS
|
$ | 37.5 | 30.8 | 6.7 | (5.6 | ) | 1.1 |
AA
|
|||||||||||||||
Non-agency RMBS
|
0.1 | 0.1 | - | - | - |
BBB
|
|||||||||||||||||
Total MBS
|
$ | 37.6 | 30.9 | 6.7 | (5.6 | ) | 1.1 |
AA
|
|||||||||||||||
ABS:
|
|||||||||||||||||||||||
ABS
|
$ | 6.0 | 5.2 | 0.8 | (0.6 | ) | 0.2 |
BBB+
|
|||||||||||||||
Alt-A ABS
|
2.3 | 1.6 | 0.7 | (1.0 | ) | (0.3 | ) |
AAA
|
|||||||||||||||
Total ABS
|
$ | 8.3 | 6.8 | 1.5 | (1.6 | ) | (0.1 | ) | A |